MANILA, June 23 Philippine lender Rizal
Commercial Banking Corp (RCBC) is studying option to
sell a stake to raise capital to comply with regulations and
support the bank's growth plans, its chief executive said late
Manila's central bank in January imposed stiffer capital
requirements under the Basel III framework, prompting many
Philippine lenders to look for ways to raise capital buffers.
"Options to raise capital include a specific investor
capital infusion," Lorenzo Tan, president and CEO with RCBC,
said in a mobile text message response to Reuters questions on
whether it is selling a stake.
Tan said the option will be similar to the capital infusion
of private equity firm CVC Capital Partners Ltd and
International Finance Corp (IFC), the private sector financial
arm of the World Bank Group, in 2011.
"The bank is looking to increase its capital base to address
the regulatory and growth requirements," he added.
On Thursday, the lender raised 7 billion pesos ($159.60
million) of Basel III-compliant unsecured subordinated Tier 2
Last year, RCBC raised 8.2 billion pesos in common equity
through various investors.
($1 = 43.86 Philippine pesos)
(Reporting by Siegfrid Alegado; Editing by Matt Driskill)